When I apply for a job, what do employers see when they do a credit check for employment and a background check?

Hundreds of companies provide employment background checks and qualify as consumer reporting agencies. An employer is required to get your written permission before running an employment report on you. They’ll likely have you sign a form giving them permission to run an employment background check.

Generally, if an employer wants to use the information from the report to take an “adverse action” against you, such as not hiring you, it must give you a copy of the report it received. You will also receive an “adverse action notice” when the employer makes their decision against you. The adverse action notice will include the name and contact information of the consumer reporting agency from which the employer got the consumer report.

Tip

Check your credit before starting a job search. Review your credit reports closely for mistakes or missing items and dispute any problems with the credit reporting company and the creditor that provided the information.

Just like with the big three consumer reporting agencies, you can get free copies of your reports every 12 months from many of the specialty consumer reporting agencies. Other specialty consumer reporting agencies may charge you a fee for your report. Keep in mind that not every agency will have information on everyone.

We’ve put together a list of some of these specialty consumer reporting agencies, along with some information about how you can obtain copies of your reports.

Tip

Many employers now use third-party consumer reports to make employment decisions about their current workers as well. These reports increasingly extend beyond traditional background checks and may encompass a wide range of information and assessments about workers. Employers must obtain worker consent, provide transparency about consumer reports used in adverse decisions, and allow workers to dispute inaccurate information.

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